Social Security Explained – Equal In Poverty

SOCIAL SECURITY EXPLAINED:

 

Jane:   Why do we have Social Security?

Mary:   Because 80 years ago people didn’t save money so our president decided to mandate savings.

Jane:   You mean I ‘have’ to pay into this ‘savings account’?

Mary:   Yes!   Of course, Silly.   You pay and your employer pays too.

Jane: Why?   Can’t I just put money into my own savings?

Mary:   Yes and no. You can save as much as you want, but the government wants to make sure you do in case you don’t… it’s a law.

Jane:   So why don’t I just invest in the stock market?   Why can’t I save that way?

Mary:   Because 80 years ago the stock market crashed and everyone lost all their money.   Many people starved and many more died.

Jane:   So Social Security will keep me from starving?

Mary:   No.   Because what they pay you is based on the cost of living 80 years ago and so you will still starve.

Jane:   But doesn’t the government invest my savings?

Mary:   Yes, but they don’t tell you how or ask your permission, they put the money wherever they want.

Jane:   But it is my money, right?

Mary:   Kinda yes, kinda no.

Jane:   What does that mean?   Can’t I get it back?

Mary:   Sortof.   You get some of it back each year after you get old.

Jane:   But what if I die before I get old? Does all the money I put into savings go into my estate?

Mary:   Silly you!   No way!   The government confiscates the money.

Jane:   But it was my money!

Mary:   It was before you gave it away.   It is kindof like charity.   You give it to them and they use it however they want and you can only hope it is going to benefit the purpose for which you gave it to them…

Jane:   But the purpose of Social Security was to benefit me!   And I didn’t give it to them willingly!

Mary:   Well now, yes you did.

Jane:   WHAT?? That makes no sense!

Mary:   Of course it does.   The government takes your money, puts it into a witch’s brew of entitlement programs to support a bunch of illegals who are escaping poverty so that you can live in poverty when you refuse to work any longer. That way, everyone is equal in poverty.

Jane:   But isn’t that exactly what FDR said he was creating this mandated savings for?   To make sure no one ever lived in poverty again?

Mary:   Boo –

Jane:   Mary!   So is poverty reduced now?  I mean compared to 1930?

Mary:   HAHAHAHA!   We only started measuring poverty rates in 1959, not 1930, not 1920.   And the numbers are all estimates.   You know, like the numbers used by the CDC and WHO.   Everything is an algorithm.   And the algorithm is only so good as what concoctions the Masters choose to insert in the formula.   They make it all up and we are told to believe it.

Jane:   But I thought that was what China did – not the US?

Mary:   Oh Jane…   Haven’t you figured it out yet?   We are China.

4 thoughts on “Social Security Explained – Equal In Poverty

  1. Another well run, efficient and thoroughly upfront government sponsored program. Despite having to pay into the system, this is a Ponzi scheme and socialist perk. They want your vote…but voting went into the dumper for good with the 2020 elections.

  2. Hi

    Laugh out Loud…. not the way I heard it from mother who suffered the depression. When America was mostly a agricultural economy the children stayed near the farm and took care of the parents.

    The industrial revolution and the Depression were almost simultaneous. Many were leaving their homes and parents behind to move where the jobs were,,, making a couple dollars a day. Few could take care of their parents. Many of the parents were starving and homeless.

    The reason for SS was to assist the elderly who could no longer work the mostly manual type jobs.

    After the war the country grew rich and exited the Depression. Plentiful jobs with good pay was the rule. The payroll tax continued and government found ways to add beneficiaries. So much money was pouring in, it didn’t matter.

    The Vietnam war came and the US started printing money. The US defaulted,,, went off the gold standard because other nations were turning in their dollars for gold fearing US inflation. The dollar started losing purchasing power rapidly. Volcker slowed the inflation but didn’t stop it as the government was borrowing (printing) more and more.

    Retail was losing profits so it was decided that production would be moved to China and other low wage slave states.
    This kept the inflation down but the problem was the good paying jobs went with the production reducing the revenue for gov programs and SS.

    Today only the war production factories remain. The Federal Reserve dollar is only worth a nickel of it’s original value. The service economy cannot provide the funding that the industrial economy did. The government and citizens started borrowing like no tomorrow to maintain the services and lifestyle.

    In the 1990s Clinton emptied what was left of the SS fund,,, something like 2 trillion dollars to claim he balanced the budget. Since then SS has been a pay as you go system. During that time frame the government changed the way it calculated inflation. What was ten percent became two percent. This screwed the SS folks but made the government stats look better. The government went on a borrowing binge that would make the Zimbabwe central bank blush massively crashing the buying power of the Federal Reserve dollar.

    At this precise moment the deficit is about 2.7 trillion and as a result inflation is climbing. Using the old inflation calculation the inflation rate is north of 10% but no one will admit it.

    As for SS. It is the only system that the benefits are paid to people that have paid some money into the system unlike Welfare, Aid to Dependent Children, Free Housing, Wicks etc which very few ever mention. And how about the possible $9000 dollars handed out in tax season if you have the right amount of earnings and number of children called Earned Income. Never hear pundits talk about that one. Heck,,, they even get all their taxes paid in, returned. Nope,,, they always jump on SS and worse they never use inflation adjusted dollars.

    In my example,,, the amount I paid in nominal dollars would only pay for a couple of years but in inflation adjusted dollars will pay for 10-12 years. If I die at 76 (the average death age) the government will be ahead by several years. Also not mentioned are those millions that die early never collecting or collecting very little.

    Yes, there should be a better system. And yes it should be voluntary. But what are you going to do with those that either didn’t save or lost their savings in market crashes and currency devaluations? Already in this century we went through three market crashes one caused by the fake virus and bullshit rules.

    The economic problems we are experiencing today is from poor economic decisions, unnecessary wars, thieves in government,,, not from SS. Heck,,, they just gave the Taliban 90 billion dollars worth of equipment after spending 2.5 trillion on the war itself. How much in Syria,,, Iraq,,, and upcoming China?

    Please excuse the length of this. Much has been left out trying my best to keep it somewhat short.

    regards

    • Ken,

      Very well written, insightful analysis.

      I always write of “SS” : S O C I A L I S T S’ (IN).S E C U R I T Y .

      -Rick

      P.S.

      Helena is extremely knowledgable,
      and her scribblings deserve a far,
      far greater audience—so the dearth
      of posts here is inexplicable; an
      ongoing mystery for me !

      • Hi

        Agreed SS is socialism,,, so is any insurance. Say you get fire insurance and your house burns down right after the insurance takes effect. You paid $2000 and received $300,000. Fair? Unemployment insurance,,, Some have been on it for 18 months now plus get a $1200 per month bonus from the federales, Fair? The Interstate highway system was built by tax dollars. Where did the thousands that were paid stimulus come from?

        We are a very socialized economy but we claim to be capitalists. True capitalism has been gone for well over 120 years. We are a hybrid economy,,, a little of this and a little of that.

        SS started as a old age insurance pension. That’s were FICA came from…Federal Insurance Contributions Act. It has become a pay as you go due to egregious mishandling of the funds. Up until the end of last century SS was hugely over funded. Then came the robber barrens. Stole the cash and left IOU’s. Ever since pundits and politicians have been savaging the system. They say the system is pay as you go but really they are paying back the IOUs. In truth SS is still solvent. They expect it to run out of these IOUs sometime in the 2030s. That’s what they’re talking about.

        Many say SS is a unfunded liability… Not yet. But Your mortgage is a unfunded liability.

        To be honest I am not sure of why so many hate SS. 55 years I worked and paid and never had a problem with it as I knew it was going to people who worked to earn it and needed it. It wasn’t Free!

        Again,,, it needs replaced and it needs to be voluntary. SS should be a retirement system where the government pays you a interest like a savings account. After all, its using your money. BUT governments are so careless in handling their finances I don’t see how this can be done. There would be trillions of dollars and there is no way they would keep their grubby hands off of it. I am surprised they haven’t nationalized all the IRA and 401k plans.

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